To The Moon

I think there have been some discussions on quantum computing stocks at the beginning of the year but we have seen some volatility in trading of these quantum computing stocks.

Quantum Computing is a field that uses quantum mechanics principles to process information, which could solve certain problems much faster than classical computers. Companies involved in this might be working on hardware, software, or related technologies.

Well-Known Companies Already Invested In Quantum Computing

IBM (IBM)

If we were to think of well-known companies in the tech sector that are investing in quantum computing. IBM comes to mind because we have known that they have been working on quantum computers and have a cloud platform called IBM Quantum.

But we need to understand that IBM is a very large company, so quantum computing might be only one part of their business, so does it make sense for us to invest in IBM, maybe one reason could be they are a leader in the quantum computing field.

Alphabet (GOOGL)

Next Google’s parent company, Alphabet would come to mind, as they have achieved quantum supremacy a few years back with their Sycamore processor.

Considering that Alphabet is a big player in tech and AI, but quantum computing is still a small part of their overall business but we could look at how Alphabet strong research could lead them to Quantum advancements.

IonQ (IONQ)

Another company that I have been looking at is $IONQ Inc.(IONQ)$. They are a pure-play quantum computing company, meaning they focus specifically on quantum. This company went public via a SPAC merger.

Their approach uses trapped ion technology, which is different from IBM's superconducting qubits. Since they are a dedicated quantum company, their stock might be more directly tied to quantum advancements.

So if you are looking at a pure-play quantum computing company, IONQ might be for you.

Rigetti Computing (RGTI)

Next is another pure-play quantum computing company which is $Rigetti Computing(RGTI)$. They also went public through a SPAC. They use superconducting qubits like IBM.

What is concerning is their financials and also recent performance where they have been on a decline trend as Rigetti also have to face with challenges like layoffs or restructuring, which are important risk that as investors, we should not overlook.

Microsoft (MSFT)

As I begin looking at big tech company who are investing in quantum, $Microsoft(MSFT)$ came to mind. Microsoft is working on topological qubits, which are supposed to be more stable but are still theoretical.

Microsoft is also working on partnership with companies like Quantinuum (formed from Honeywell and Cambridge Quantum). But Microsoft's quantum efforts are part of their Azure cloud services, so this is still a small part of their bigger business.

Honeywell

As mentioned above, Honeywell is another company which have merged its quantum unit with Cambridge Quantum to form Quantinuum, so this helped Honeywell to have some exposure to Quantum computing, but we need to understand that Quantinuum is a private company, so we should not looked at Honeywell as the development of Quantinuum might not have any significant impact on Honeywell's stock.

Potential Quantum Computing Stocks We Can Look At

After we have looked at the potential candidates for quantum computing stocks, we could basically summarize them as follows.

My Preferred Quantum Computing Stocks To Watch

But if we were to narrow down further, since pure-play companies might have higher growth potential but more risk, while big tech offers stability but less direct exposure.

As an investor, we need to manage some risk to our portfolio, so I would prefer a mix and I would also focus on stocks which has great potential and also more directly involved.

Hence I would be putting these 3 stocks as my preferred, IonQ is definitely a key player. IBM and Alphabet might be the other two.

Alternatively, including Rigetti but considering their recent issues. Alternatively, maybe Honeywell via Quantinuum, but as Quantinuum is private, not sure. Alternatively, look at companies providing components for quantum computers, like chip manufacturers.

The reason why I do not include chip manufacturers because that is an indirect, similar to those stocks involved in quantum software, and also not NVIDIA, since their GPUs are used in quantum simulations, but that is more classical computing supporting quantum research.

So I would focus on these three stocks, which are U.S.-based and have significant quantum initiatives are:

1. IonQ (IONQ)

2. IBM (IBM)

3. Alphabet (GOOGL)

Here are their key advantage we need to consider.

IonQ - high growth potential, pure-play

IBM - established, diversified but strong in quantum

Alphabet - strong R&D resources, quantum supremacy

And we also need to look at these stocks recent developments. For example, IonQ has been expanding partnerships, IBM has been advancing their quantum roadmap, and Alphabet continues research.

The reason why I prefer these three U.S. quantum computing stocks is because of their significant potential, balancing innovation, market presence, and strategic positioning:

IonQ (IONQ)

A pure-play quantum computing company specializing in trapped-ion technology, known for scalability and error resistance. IonQ has partnerships with major cloud providers (AWS, Azure, Google Cloud) and government agencies. Its focus on commercial applications and recent revenue growth (e.g., $22 million bookings in 2023) highlights its potential in the near-term quantum ecosystem.

if we looked at how IONQ have been trading, it is currently trading above the 50-day period and RSI is also building up, and there should be more momentum coming as we are also seeing 12-EMA and 26-EMA converging.

We need the IONQ bulls to continue their attempt for a daily uptrend expansion, as I do see that now tech stocks including quantum stocks are getting some attention from traders and investors.

This might be a good time to get in at the current price if you are into AI or quantum.

IBM (IBM)

A leader in quantum research with a 127-qubit processor and a roadmap targeting 1,000+ qubits by 2025. IBM Quantum Network includes over 250 organizations, fostering real-world applications. Its hybrid cloud strategy integrates quantum computing, offering stability through diversification while maintaining cutting-edge R&D.

Something that we need to understand is quantum is only a part of the entire IBM business, but they do provide the necessary platform and tools for any organization looking to deploy quantum computing.

From the technicals, IBM is currently enjoying a bullish momentum as it is trading comfortably above the 12-EMA and we are also seeing strong RSI meaning buying sentiment looks to increase.

I am seeing a potential crossover on the RSI over the RSI MA from below, which could signal a stronger bullish momentum move, I am looking to see if there is any opportunities to get into IBM, for its business, but also how IBM could benefit from quantum demand.

Alphabet (GOOGL)

$Alphabet(GOOGL)$ Google Quantum AI achieved quantum supremacy in 2019 and continues to innovate with milestones like error-correction breakthroughs. Its resources and collaborations (e.g., with NASA) position it for long-term breakthroughs. Quantum efforts are tied to its cloud and AI dominance, providing infrastructure for future commercialization.

As a cloud provider who are already enjoying demand from AI, but from the recent technicals, GOOGL are facing some challenges as the momentum does not seem to be very strong, GOOGL is currently trading below the 50-day MA, and with quantum demand, which is only part of its cloud, we are not sure whether it can help GOOGL business.

But for the long term, if organization start to experience with quantum, we should be seeing GOOGL enjoying the demand on its cloud business.

Summary

While we might look at quantum computing stocks for long term, we need to understand some key considerations of the three stocks that I have shared.

IonQ offers high-risk, high-reward potential as a pure-play. IBM provides stability with a proven quantum track record. Alphabet leverages vast resources for transformative R&D.

So when we evaluate these stocks, we need to continue to monitor industry trends, qubit scalability, and commercialization timelines. Hope this helps anyone who are looking at quantum computing stocks.

Appreciate if you could share your thoughts in the comment section whether you think quantum computing stocks would be getting some attention and some good momentum soon.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.